Following the breaking news over the weekend that President Joe Biden has pulled out of the election in the US, currency markets failed to react to this news. However, pressure is on President Biden to resign as pressure grows on his ability to complete the rest of his term as president. Should President Biden resign from his post then there is likely to be some market volatility.
Attention shifts towards tomorrows releases with Purchase Manager Index reports being announced across the UK and Eurozone. Markets are forecasting the UKs manufacturing sector to decline to 51.1, this is still above the 50 point growth mark.
The Eurozone are set to release its Purchase Manager Index across all major sectors. The ECB are set to watch these releases closely, as reports are suggesting there will be another rate cut in September.
Focus will turn to the US on Thursday as Gross Domestic Product is forecasted to come in at 2 percent, which is up from last quarter’s 1.6 percent.
On the currency front the pound has remained relatively flat against both the dollar and the euro.
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